When you think about retiring, people are told to look at your expenses and say, “I’m spending $5k a month now. So I need $5k a month in retirement income.”
But this forgets the fact that all jobs cost money, which is going into your current budget, and making you think you need more post-retirement income to survive.
Jobs have direct expenses such as:
Eating out for lunch every day,
Gas / Tolls / Parking,
Uniforms / Suits and getting the stuff cleaned,
But the biggest direct expense a job does is “time.” If you don’t have time to do something, because you’re at work, now suddenly other expenses disappear and now we see the indirect costs of a job:
You don’t need a baby sitter, since you’re home with your kids,
You don’t need a marriage counselor, since your marriage doesn’t suck anymore because you actually have time to make it good to start with,
You don’t need a pool cleaning guy, maid, or lawn mowing guy, since you can do that stuff easily yourself,
You don’t need a private school for your kids, since you can home school them (if that’s your thing),
You don’t need a dinner out on the town, since you have time to make your own dinner at home,
You don’t need a heart surgeon, because you didn’t have a heart attack on Monday before work when the majority of heart attacks occur,
And so on.
Your job can make you money for sure, but silently, it is keeping you on a hamster wheel. You need the job -> to make money -> to pay for the suits -> for your job.
What expenses is your job making you incur that you won’t have when you quit?